Most of the discussions on solutions to climate change are too centered on renewable energy and electric vehicles. That is why Paul Hawken in his recent book Drawdown: The Most Comprehensive Plan Ever…
We’ve written a couple of blogs about the influence/impact of the financial sector on company sustainability strategies and activities –
- The ESG Investing Enlightenment | State Street Corporation
- IEEFA report: Fund trustees face growing fiduciary pressure to divest from fossil fuels
- Can You Afford To Risk Not Aligning Corporate And Social Purposes?
It is interesting for us to note the distinctions made in this article which uses the financial leverage which hasn’t yet been applied within the public sustainability discourse. Think of the untapped potential – involving the CFO and Investor Relations Office as part of the brain trust. Where the profit/economics of sustainability have, for the most part, been relegated to secondary status in sustainability focus – the author is advocating an economist’s perspective on the economic benefit – which isn’t directly tied to profit – but to more largely the impacts to prosperity!
Why focus on climate change? – Time is short according to the latest UN IPCC Report.
The author contends that the redirection of funds invested in pension and insurance into “funds with environmental, social and governance (“ESG”) criteria integrated into the investment strategy. These are funds with a tilt towards sustainability factors or having specific thematic or geographical coverage focused on exclusions, climate change or diversity.” would be a major catalyst. The upside for investors? Companies with top ESG ratings outperformed others by 42% over a 3-year-time period.
Curious? Read the full article at: www.weforum.org
We enable change leadership. Sustainability is an area where we see leaders grappling with starting and/or sustaining efforts. Get in touch if your company needs a journey partner to define your approach to climate change.